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moneysense.ca, 2/01/07
The 2006 Sleepy Portfolio Report Card
The Sleepy Portfolio had another stellar year posting total returns of 14.7%. The big winners were emerging markets (up 22.7%) followed by Canadian REITs, US small-cap, Canadian large-cap, EAFE equities, US large-cap, US mid-cap and Canadian small-cap. Just like in 2005, there were no asset classes that ended the year in the negative column. Even Canadian bonds, which lost 1% in value posted total positive returns.
As I noted in my previous post, our personal portfolios returned 9.5% over the year, dragged down by losses in Loblaws (TSX: L, down 10%), CGI Group (TSX: GIB.A, down 9%), EPCOR Power (TSX: EP.UN, down 7.5%) and a few other small-cap names.
![[Table showing value of Sleepy Portfolio at the end of 2006]](http://www.canadiancapitalist.com/images/2007/sleepy2006-2.JPG)
moneysense.ca, 2/01/07
Are all these holdings within your RRSP?
FT
http://www.milliondollarjourney.com
FT: Most of it is in our RRSPs but we also have some in RESPs, taxable portfolios, ESPPs, Stock Options etc.
I notice that you have XIN in your Sleepy portfolio but talk about buying EFA (the US equivalent) in a recent post. What are your thoughts about buying XIN vs. EFA especially in the case of an RSP where the dividend payment method for XIN (capital adjustment) does you no good?
I’d like to know as I’m considering selling my XIN RSP holdings and buying EFA instead.
O: The Sleepy Portfolio was constructed before the foreign content restrictions were removed. I’m still keeping XIN instead of EFA to keep things simple.
Are you sure that XIN still makes a capital adjustment instead of a dividend payment? I ask because XIN now just holds the EFA with currency hedging thrown in, so you should get cash dividends.
I’ve made a number of posts on this topic which you can search for in the main page by typing “xin”.
IRR and Returns on Portfolios…
There is a very interesting discussion at the Canadian Capitalist’s blog about how to determine performance and there was some talk of Internal Rates of Return (IRR):
In one comment, the Canadian Capitalist, said:
It is true that IRR is the true …
What portfolio composition for 2007? Any thoughts on XBB vs XSB?
Pat: The portfolio composition will remain the same, partly because I don’t think anyone can accurately predict which asset classes will do well. XBB is a medium term bond fund compared to the short-term XSB and as such should yield a bit more in normal circumstances.
[...] The Canadian Capitalist once again posted the results of his sleepy portfolio, the portfolio he constructed using only passive index funds, which he uses as his own personal benchmark to which he can compare his own performance. Based on the sleepy portfolio’s stellar performance, I wonder if he’ll stop investing in individual stocks so much in the future and invest in more passive index ETFs instead. [...]
[...] I was a little bit surprised at the lower than usual allocation to Canadian equities in the model portfolios. For example, the high-risk portfolio (80% stocks, 20% bonds), which is comparable to the Sleepy Portfolio, has an 8% allocation to Canadian stocks. The author explains that the 10% of equities allocated to Canadian stocks is appropriate because foreign stocks have historically provided a higher return at lower risk. [...]
[...] Sleepy Portfolio report cards: In 2005, the Portfolio was up 12.9%. In 2006, the Portfolio had another stellar year and was up 14.7%. In 2007, the Portfolio returned a minuscule 0.2%. In 2008, the Portfolio had a bad year, losing [...]